Two malls - Serangoon Plaza, Cityvibe - up for sale

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Two malls - Serangoon Plaza, Cityvibe - up for sale

Post by singaporeproperty » Thu Sep 26, 2013 2:23 pm

Published September 26, 2013

Two malls - Serangoon Plaza, Cityvibe - up for sale

Serangoon Plaza at an indicative range of $360-368m, Cityvibe for $130m

By ong chor hao

SERANGOON Plaza in Little India has been put up for collective sale at an indicative price range of between $360 million and $368 million, while over in Clementi, Cityvibe mall has been put on the market with an asking price above $130 million.

Serangoon Plaza, or 320 Serangoon Road, is a five-storey complex with 128 units of retail and office space located next to the prominent 24-hour Mustafa Centre shopping complex. It is less than 200m away from Farrer Park MRT station.

Feature Development, an associate of the Tong Eng group of companies, is the majority owner, holding more than a 90 per cent stake. The company's investment manager, Terence Teo, said that there were several reasons for putting the site up for tender.

First, the timing is right "in light of the quite buoyant commercial market", he said.

Secondly, the building itself is due for a facelift. Feature Development bought Serangoon Plaza in 1985, and the complex is understood to have been completed in the 1960s.

The third reason was that the plot ratio at the site is under-utilised. With a plot ratio of 3.0 and being zoned for commercial use, the freehold site of about 68,521 square feet can be redeveloped into a commercial project with a permissible gross floor area of up to 205,563 sq ft, said Savills Singapore, which is handling the sale.

The indicative price range translates to between $1,751 per square foot per plot ratio (psf ppr) and $1,790 psf ppr. Savills believes that Serangoon Plaza could prove attractive to medium and large property players.

"We expect strong interest from developers seeking (a) good quality commercial plot in an established city fringe location," said Suzie Mok, senior director of investment sales at Savills Singapore.

Besides enjoying heavy footfall, the vicinity is set for greater vibrancy with the upcoming Connexion at Farrer Park medical hub, developed and managed by the Farrer Park Company (formerly known as Singapore HealthPartners).

Ms Mok said that Savills was working to secure a 100 per cent mandate for the sale of 320 Serangoon Road, and is "very close" to that mark. If this happens, the transaction need not be subject to approval by the Strata Titles Board.

The tender will close at 3pm on Oct 31.

Also put up for sale yesterday was Cityvibe mall, a four-storey retail property on a land area of about 15,600 sq ft close to Clementi MRT station and Clementi Mall. It has a total net lettable area of just under 30,000 sq ft and is fully leased.

The owner is looking at a price "in excess" of $130 million, said Knight Frank, the sole marketing agent for the property. Cityvibe had been put up for sale before in 2008 with an asking price then said to be around $140 million.

Mary Sai, executive director for investment and capital transactions at Knight Frank, said that Cityvibe's owner felt that the timing was right for the divestment.

Ian Loh, head of investments and capital transactions at Knight Frank, said that the proposed sale presented a "rare opportunity" given that most retail malls in Singapore are owned by real estate investment trusts (Reits) and remain tightly held.

Ms Sai said that with Clementi Mall nearby, human traffic at Cityvibe has improved, but there was still scope for the new owner to reposition it "to benefit from the spillover from Clementi (Mall), not that it is not well-patronised now".

Potential new owners could increase rent by subdividing the larger tenanted floor plates and having more tenants, Knight Frank said. They can also consider to strata-title the existing mall to sell to retail investors in the future.

The tender for Cityvibe is through an expression of interest and will end on Oct 31 at 3pm. ... e-20130926

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